The measures taken to stave off the life-threatening effects of the COVID-19 pandemic have taken quite a toll on Arizona’s economy. However, with plans of an advanced chip factory opening in the state in 2021, the future certainly seems a lot brighter.
Read on to learn more about Arizona’s COVID-19 measures and how the new microchip plant will affect the local economy post-pandemic.
How COVID-19 has affected Arizona’s economy
Like the rest of the US, Arizona’s economy has been hit hard by the COVID-19 pandemic. The stay-at-home executive order implemented earlier this year left the future of countless businesses in limbo. Many were forced to close shop due to a lack of revenue.
Arizona has since continued to roll back reopening plans due to an increase in COVID-19 cases in the state. The latest measures include the shuttering of theaters, fitness centers, and water parks.
Unemployment insurance claims have remained high. Data on June 27, 2020 shows 26,328 people claiming unemployment insurance, and a whopping 156,043 making initial requests for pandemic assistance.
Owing to the shutdown of a significant number of companies and businesses, unemployment has risen dramatically. The year-on-year weekly percentage change in unemployment insurance claims has likewise surged to 530.3%.
According to the Bureau of Labor Statistics, the state did experience a sharp drop in unemployment figures in May at 8.9%, down from a historic high of 13.4% in April. However, this remains one of the highest jobless rates recorded in nearly nine years.
New factory slated to be built in Arizona in 2021
But there’s a bright spot on the horizon: Taiwan Semiconductor Manufacturing CO. (TSMC), makers of Apple’s A-series chips, recently announced plans to begin construction on their advanced chip factory in Arizona in 2021.
Governor Doug Ducey and Mayor Kate Gallego confirmed the development, which is slated to start production by 2024. TSMC expects to spend some $12 billion on this investment, spread over a nine-year period from 2021 to 2029.
According to the Mayor Gallego¸ she and Chris Mackay, Phoenix economic development director, have worked with local and federal government entities to make this happen. Investments such as this plant are expected to help strengthen the local economy considerably.
Outlook on Arizona’s post-COVID-19 economy
In a post-COVID-19 economy, providing jobs is one of the best ways to ensure continued growth. Having one of the biggest manufacturers operating in the state is a big win both for Arizona’s local economy and its residents.
TSMC’s Arizona factory is expected to create an estimated 1,600 high-tech professional jobs for the state. This represents a significant number of employment opportunities that can bolster the state’s economy for years to come.
There’s also a potential to create even more jobs within the state unrelated to manufacturing. More employment in Arizona could spur a rise in opportunities for the rest of the business sector as well. A new factory can encourage people to move to Arizona in search of better options, which will be great for real estate as well as for other sectors.
Get the latest on Arizona and your real estate options in the area with the help of Aeris House Properties—the best Scottsdale realtor. Get in touch with our team today by calling 602.466.9771 or sending an email to info(at)aerishouse(dotted)com.
